Congress Expected to Pass CAFE Increase, But White House Veto Threatened
By John O'Dell December 5, 2007 By Terril Yue Jones, ContributorWASHINGTON, D.C. -- The House is expected to pass a sweeping energy bill Thursday that includes dramatically higher fuel-economy requirements for cars and trucks.
But it could be the end of the year before a final measure clears both houses of Congress, and right now the threat of a presidential veto hangs over the measure.
Once past the House, the bill will proceed to the Senate where it is likely to face changes that House members will have to approve. The process could delay final passage until late this month. Big CAFE Boost
While Senate members tussle with sections of the legislation dealing with tax breaks for oil companies, the revised standard that will raise the corporate average fuel economy, or CAFE, for cars and light trucks to 35 miles per gallon by 2020 will most likely survive untouched, observers say.
"I think it will be scaled back, with renewable fuels standards, CAFE and energy efficiency measures intact," said Michael J. Stanton, president of the Association of International Automobile Manufacturers, an alliance of foreign auto and parts makers.
"They've got to do that if they're going to avoid a veto." House and Senate lawmakers agreed late last week that the bill will call for raising CAFE standards from the current 22.2 mpg for light trucks and 27.5 mpg for passenger cars.
Although the new standard calls for a fleet-wide average of 35 miles per gallon, it keeps alive the separation of cars and trucks that enables fullsized pickups and sport utility vehicles to have lower average mileage with cars making up the difference by exceeding 35 mpg.
White House Not Happy
On Monday a senior White House adviser suggested President Bush could veto the legislation because of provisions for oil taxes and a requirement that utility companies generate 15% of their electricity from renewable sources by 2020.
"It appears Congress may intend to produce a bill the president cannot sign," National Economic Council Director Al Hubbard wrote to House Speaker Nancy Pelosi, who has been championing the energy legislation.
Pelosi responded Wednesday that the legislation, known formally as the Energy Independence and Security Act, will save U.S. families $700-1,000 a year in gasoline, slash oil consumption by 1.1 million gallons per day by 2020 and reduce greenhouse gases by the equivalent of taking 28 million vehicles off the road.
"We have crafted legislation that addresses the areas of concern raised in your letter, and this bipartisan legislation has earned the strong support of leaders in the business, labor, faith, and environmental communities across the nation," Pelosi told Hubbard in a written reply.
Brendan Bell, the Washington representative for the Union of Concerned Scientists, said he does expect President Bush to sign the bill into law before the end of the year.
"This is a historic moment where the auto industry is finally recognizing that they have the technology to raise fuel economy standards for both cars and trucks," Bell said.
"We feel it's a major win for the environment."
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